Which of the following statement is true about variable expenses

Asked by admin @ in Business viewed by 301 People

A.The amount you spend on variable expenses do not change during certain months and do change during other months.

B.The amount you spend on variable expenses changes from month to month.

C.The amount you spend on variable expenses remain the same from month to month.

D.None of the above are true.

Answered by admin @


Answer:

B.The amount you spend on variable expenses changes from month to month.

Explanation:

Variable expense is that which changes in proportion to increase or decrease in production, sales or any relevant activity. You pick the hint from the word "variable" which means 'changing' and from understanding this, you eliminate the choices that say otherwise.


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